Interesting article about Oil

wanghong

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: s1 v$ l& ^9 K% Q2 mBelow is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
9 |; I2 v# h5 i( a2 ^4 S+ Nthese oil producer will go bankrupt or out of the business even if
/ ~1 E# @! j5 ^3 B+ B1 ~! V" acrude prices improves. This implies also to good names such as Shell,
0 A3 r0 W) E! P7 G& h4 x" r- {EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
+ ?3 z8 `' [7 B3 X* i' K( O; vleast $50.00 per barrel. Today, oil price declined by a record amount.

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There are several reasons the price of oil is decreasing in the face
4 G; T1 b) q) Y8 H* Sof so much news. These reasons are:
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- E3 c) F0 U( Y2 n* F" n1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.

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) f0 M, L- t- I! D2 h9 u2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.


2 t7 ?! C, j8 E, f# i3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.

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' j( M) F5 B0 X+ M! |( T& ?: K& {4. Production of bio-fuels is beginning to reach critical mass. Bio
# N) l' G" H# }/ s" O4 Bfuel is being produced from many plants and algae. The production
6 O! q9 |% q8 ^3 D1 v' R( t) Y7 Mpotential per acre in some cases is astounding. Many countries are
racing to produce bio fuels.
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) o& n' F0 v7 `- e" O. \$ R5. Virtually every restaurant in the US and all food processing plants
are now selling their used oil to bio-diesel producers. Every pork,
, a/ C5 ^* d  ecattle, turkey and chicken processing plant will soon sell their fat
- q0 Q1 `. {1 T  R2 g- ~8 s: ito bio-diesel producers. One pork processing plant in Oklahoma is
2 N' O" G. q  S" qproducing 30,000 gallons of bio-diesel per day from pork fat.


, J2 O; V. h# a/ K2 T6 u6. There are 99 nuclear reactors in various stages of planning and
7 l/ U, ^' [/ k, mconstruction around the world at this time. Several hundred more are
3 p; d) p) R7 O8 x* W% wexpected to be built in the future. Much of the energy they produce
' ^; j9 d3 E1 [& f) Ywill replace oil.
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' }' ^2 c( ]" A5 X7. Every company in any form of transportaion business is replacing
8 y+ ~, |; }$ a9 H8 W" E; w0 w' p) polder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
) \8 n( L2 y6 T- Q8 I, i8 l( \& oequipment.

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2 a2 {3 H  O% }Airlines are flying airplanes with bio-fuel. They are finding the bio-
6 @% X8 d! e, _3 S% Q3 d; ?; Tfuel is cleaner and performs better than jet fuel.
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' [6 X, V5 c0 h; L8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
$ ?# ^3 D1 b/ b) R, ^$ L8 toil.


1 Z0 b. T" G5 l9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
8 G- E  |7 I! |1 voil wells.

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10. Solar, wind and ocean energy is displacing oil as an energy
- R) y3 C2 d7 b9 X6 F& Osource. Three new wind turbines are being erected every day in the US.
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2 u1 f$ u/ u9 DEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
0 q5 \$ _' n6 W6 b; G7 xto control oil prices.
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  Z0 p9 J4 i. [With the above scenario, I still believe that there are under
& w7 u/ l0 d2 j% |2 g( Y8 k' Uperformed OIL companies and probably they are yet to get the justified
value .....
# s4 K6 f$ C8 @IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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$ P1 g; h+ z* S5 wThe above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only